A silent supply shock is gripping Ethereum as institutional players have absorbed nearly 11% of its circulating supply, fundamentally repurposing the asset from a speculative vehicle into yield-bearing financial infrastructure.
According to data from Strategic ETH Reserve, corporate treasuries and spot ETFs now control 10.72% of all ETH. This accumulation is creating a pronounced liquidity drain, with Ethereum reserves on centralized exchanges plummeting to a record low of 10.5%. The catalyst is a strategic shift, exemplified by BlackRock’s filing for a staking-enabled ETH trust, aiming to capture the network’s native yield.
The network’s value is increasingly tied to its role as core financial plumbing, settling $1.6 trillion in monthly stablecoin volume and securing $12.5 billion in tokenized real-world assets. As more ETH is locked in staking and vaults, the thin remaining liquidity on exchanges sets the stage for high price sensitivity if institutional demand accelerates further.
Source: Strategic ETH Reserve
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